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E-cars intended for export at a Chinese port: Beijing wants to push its own brands

Photo: AFP

China wants to support its electric car industry in order to stabilize the People's Republic's foreign trade and make it easier to bring the vehicles overseas. The “healthy development” in trade and cooperation with plug-in hybrids and electric cars will also help to modernize the auto industry, the Ministry of Commerce said in a statement on Wednesday.

A total of nine authorities, including the Ministry of Finance and the Foreign Office, also recommended setting up research and development centers abroad and cooperating with companies outside China.

In Europe and the USA, Chinese e-car expansion plans are being watched critically: In the European Union, an anti-subsidy investigation against Chinese e-car manufacturers is ongoing. In the USA, an import tariff of 25 percent keeps manufacturers from China out of the market.

The Chinese auto industry has praised the recommendations for action

The Chinese Ministry of Commerce called for active help for companies to respond to restrictive measures in foreign trade. Furthermore, a positive image of Chinese brands should be built.

The authorities also called for the procedure for exporting batteries for electric cars to be optimized and processing times to be improved. Meanwhile, the financial system should improve support through loans and foreign transfers.

The Chinese auto industry praised the recommendations for action. These would help the sector to integrate better worldwide, according to the Chinese Car Manufacturers Association.

China was the world's largest car exporter in 2023. The manufacturers exported many vehicles to Russia, for example, which is under sanctions from Western states because of its war of aggression against Ukraine.

Competition from China is also a big issue for Tesla. Tesla boss Elon Musk recently warned that Chinese automakers are so strong that without trade barriers, most of the industry would have no chance against them. "They are extremely good," he said. "If there are no trade barriers, they will pretty much destroy most other car companies in the world."

mmq/dpa